Student Loan Program Simplification: Final Report. A Report to the Congress of the United States and the Secretary of Education.

Advisory Committee on Student Financial Assistance, Washington, DC.

This Advisory Committee's final report presents study activities, findings, and recommendations for the simplification of the Federal Family Education Loan Program (FFELP). Analysis showed that the current FFELP program structure and operations are needlessly complex and require major reform. An interim report providing recommendations for the restructuring of the FFELP also offers key recommendations for structuring a streamlined direct lending program. The Committee recommended the consolidation of FFELP participants, creation of a single loan program with standard terms and conditions, refinancing provisions, and integration of the loan process into the existing Title IV delivery system. Further, the Committee suggested that any new direct lending program would require minimal interface with the prior FFELP, beyond capture of default information, be a centralized federal program, and have minimal numbers of participants outside the educational institutions. Additional implementation imperatives reported for future student loaning required (1) access to loan capital being maintained for all populations; (2) full integration of the student loan program into the existing Title IV delivery system to minimize the burden on students and institutions; and (3) care in keeping a reformed program from becoming extremely complex. Appendices include a description of recommendations for simplifying the FFELP and the direct lending program. A summary letter is attached. (GLR)